Don't ignore the private rented sector, expert warns

News Category: Industry News

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A residential lettings expert fears a future housing crisis is in store unless policymakers recognise the importance of the rental market in the current economic climate.

Keshav Thukaram, managing director of landlord advice website Smartlandlord, was commenting after the Bank of England today cut interest rates by 50 basis points to 0.5 per cent.

This followed a cut by the same margin in February, but Mr Thukaram feels future generations could struggle to find homes unless action is taken to revive both buy-to-let lending and the mortgage market.

"Although this should encourage banks to start offering mortgages again, while confidence in the housing market remains so low, a torrent of cash will only result in a trickle of extra liquidity," he said.

Mr Thukaram added that it looks "inevitable" that the Bank will now turn to quantitative easing to address the economic crisis.

The Bank cited persistent problems in the international credit markets as part of the reasons for today's cut in the base rate.

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